THOUSANDS of workers have been given cash back after a Government investigation found they were underpaid wages.
The Department for Business and Trade has named and shamed over 500 companies that failed to pay the national minimum wage (NMW) to staff between 2015 and 2023.
AlamyThousands of workers were found to have been underpaid[/caption]
Under the NMW, workers must be paid a certain amount per hour, but the 524 employers were found to have flouted the law.
The NMW is currently £10.42 an hour for over 21s, due to rise to £11.44 in April, and £7.49 and £8.60 for 18 and 20-year-olds respectively.
Among the hundreds of companies, Mitchells and Butlers was found to have underpaid over £560,000 to more than 16,000 staff.
Meanwhile, bakery chain Greggs underpaid over 4,700 employees a collective amount of £219,129.
Currys was also found to have underpaid over 4,000 workers a combined amount worth over £120,00.
In total, all 524 businesses were found to have underpaid over 172,000 workers a combined £16million.
They have since paid back the money owed and also faced further financial penalties.
The Department for Business and Trade said not all minimum wage underpayments were intentional but that action would be taken against employers who don’t pay staff the correct amount.
Kevin Hollinrake, minister for enterprise, markets and small business, said: “Employees deserve to get paid properly for the hard work they put in.
“While the majority of businesses already do the right thing and pay their staff what they are owed, today’s announcement sends a message to the minority who aren’t – that there are repercussions to undercutting hard work from their staff.”
How to check if you’ve been underpaid
There are various reasons why you might not get the national minimum wage when you should, despite it being an illegal practice.
For example, unpaid working time can cause your hourly rate to drop below the minimum level.
This includes overtime, training time or being asked to arrive early.
Your boss might not raise your salary when the rates go up every April or if you move into a higher wage bracket as you get older.
If you’ve had to buy uniform for work, that can drag you below the minimum wage too.
You can use the government’s National Living Wage calculator to check you’re getting the correct amount based on your salary.
How to get the money you’re owed
There are two approaches you can take if you think you’re being underpaid.
You can anonymously report the company to HMRC online.
As part of the claim, you’ll be asked for some personal details and questions about your complaint.
You should agree to letting HMRC contact you as it might need more information to move your claim forwards.
The tax office will launch an investigation if it has enough information and will take action if you’ve been underpaid.
It can make your boss repay you the amount that’s missing, and this can be backdated by six years at the current minimum wage rate.
Your colleagues will also get a refund if they’ve been affected.
HMRC could also fine your employer or take it to court if it refuses to pay out.
These investigations can take several months, so it’s not the quickest option to get the money you’re owed.
The other option is to have an informal conversation with your boss.
Consider whether you want to receive back pay or just be paid a higher rate going forward.
It will be helpful to have evidence of your claim including payslips and an idea of how much you have been underpaid.
If an informal chat doesn’t work you can make a formal complaint – check how to do this with your company’s HR department.
Following that, your final option is to take the company to an employment tribunal.
You can find out more about how to do this on the MoneySavingExpert website or by checking with Citizens Advice.
A Greggs spokesperson said: “During a review with HMRC, it was brought to our attention that our uniform policy for retail colleagues was not aligned with HMRC’s interpretation of national minimum wage regulations, and as a result, we revised our uniform policy in January 2018.
“Once the review was concluded, we reimbursed colleagues and former colleagues who had been impacted by this unintended error.”
A Mitchells & Butlers’ spokesperson said: “The HMRC review of our pay practices, which concluded in 2019, identified a technical misinterpretation of the regulations.
“All arrears due were paid to our valued employees and ex-employees at the end of the review and we have updated our policies where necessary.”
A Currys spokesperson said: “This historic issue dates back to pre 2018 and relates to a minor uniform technicality, which we have long since rectified.
“We pride ourselves on paying our colleagues well, in fact, we’ve raised colleague pay 37% over the past five years, and continue to invest in this as a priority.” We know our colleagues are our magic ingredient, and the reason people love to shop at Currys.”
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